Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — Sandler O'Neill + Partners 2018 West Coast Financial Services Conference
17 slides from Community West Bancshares's conference presentation, Mar 5, 2018
Slide 1: Investor Presentation: Sandler O'Neill 2018 West Coast Financial Services Conference
Investor Presentation Sandler O'Neill + Partners, L.P. 2018 West Coast Financial Services Conference March 6, 2018 Jim Ford President & CEO Dave Kinross EVP CFO
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 Certain matters discussed herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained herein that are not historical facts, such as statements regarding the Company’s current business s
Slide 3: Experienced Management Team
Experienced Management Team 3 Executive Position Years at CVCY Years of Experience James M. Ford President & CEO 4 38 David A. Kinross EVP, Chief Financial Officer 12 28 Gary D. Quisenberry EVP Commercial & Business Banking 18 33 Lydia E. Shaw EVP Community Banking 11 33 Patrick J. Carman EVP, Chief
Slide 4: Overview
Overview 4 NASDAQ Symbol CVCY Market Capitalization $276.4 Million Institutional Ownership 42% Insider Ownership 10% Total Assets $1.66 Billion Headquarters Fresno, CA Number of Branches 24 Year Established 1980 Strategic Footprint Bakersfield to Sacramento 24 Branches in 9 Contiguous Counties As of
Slide 5: Financial Highlights
Financial Highlights 5 2017 2016 2015 Total Assets $1.66 Billion $1.44 Billion $1.28 Billion Net Income $14.03 Million $15.18 Million $10.96 Million Diluted EPS $1.10 $1.33 $1.00 Net Interest Margin 4.41% 4.09% 4.01% ROA 0.94% 1.15% 0.90% ROE 7.69% 9.84% 8.12% Cash Dividends per share $0.24 $0.24 $0
Slide 6: Attractive Investment Opportunity
Attractive Investment Opportunity 6 As of February 28, 2018 Source: NASDAQ Monthly Closing Price Data 0 5 10 15 20 25 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 Pr ic e CVCY Stock Price
Slide 7: Growing Franchise
Growing Franchise 7 Note: Acquisitions of Visalia Community Bank occurred on July 1, 2013, Sierra Vista Bank occurred on October 1, 2016, and Folsom Lake Bank occurred on October 1, 2017 853,078 986,924 1,157,483 1,222,526 1,321,007 1,491,696 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,4
Slide 8: Strong Net Income and NIM
Strong Net Income and NIM 8 7,520 8,250 5,294 10,964 15,182 14,026 17,561 4.21 4.09 4.11 4.01 4.09 4.41 3.80 3.90 4.00 4.10 4.20 4.30 4.40 4.50 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2012 2013 2014 2015 2016 2017 2017* Pe rc en t Th ou sa nd s Net Income Net Interest Mar
Slide 9: Solid Earnings
Solid Earnings 9 0.88 0.84 0.46 0.90 1.15 0.94 1.18 6.56 6.89 4.06 8.12 9.84 7.69 9.62 - 2.00 4.00 6.00 8.00 10.00 12.00 - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 2012 2013 2014 2015 2016 2017 2017* R O A E Pe rc en t R O A A P er ce nt ROAA / ROAE ROAA ROAE * Excluding DTA revaluation
Slide 10: Steady Deposit Growth and Lowest Cost of Funds
Steady Deposit Growth and Lowest Cost of Funds 10 719,601 848,493 1,006,560 1,065,798 1,144,231 1,284,305 0.23 0.15 0.11 0.09 0.09 0.08 0.00 0.05 0.10 0.15 0.20 0.25 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2012 2013 2014 2015 2016 2017 Pe rc en t Th ou sa nd s Average Total D
Slide 11: Attractive Deposit Mix
Attractive Deposit Mix 11 Non-Interest Bearing 41% Now/Savings 29% Money Market 21% TCDs 9% As of December 31, 2017 Total Deposits = $1.43 Billion
Slide 12: Loan Totals and Yield
Loan Totals and Yield 12 394,575 445,300 533,531 578,899 644,282 790,504 6.06 5.96 5.53 5.27 5.29 5.51 4.80 5.00 5.20 5.40 5.60 5.80 6.00 6.20 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2012 2013 2014 2015 2016 2017 Pe rc en t Th ou sa nd s Average Total Loans Total Lo
Slide 13: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio 13 Commercial & Industrial, 11% Agriculture Production & Land, 10% Owner Occupied Real Estate, 23% R/E Construction & Land, 11% Commercial Real Estate, 30% Other Real Estate, 3% Equity Loans and Lines, 8% Consumer & Installment, 3% As of December 31, 2017 Excludes Def
Slide 14: Agricultural Loan Commitments
Agricultural Loan Commitments 14 Almonds 20% Table Grapes 4% Open Land 19% Walnuts 9% Wine Grapes 6% Other 12% Tomatoes 2% Raisins 6% Cherries 9% Tree Fruit 8% Cotton 1% Pistachios 3% Citrus 1% As of December 31, 2017
Slide 15: Conservative Investment Portfolio
Conservative Investment Portfolio 15 US Government Agencies 11% Municipal Securities 24% Agency CMO, MBS & Other Securities 54% Fed Funds Sold 10% Equity Mutual Funds 1% As of December 31, 2017 Total = $605 Million Yield = 3.19% Duration 3.48 Years
Slide 16: On the Horizon
On the Horizon 16 Organic Loan Growth Assimilate FOLB Acquisition in 2018 Improve Efficiencies Fee Income Improvements Execute Branch Footprint Optimization Strategy Monitor Agriculture Impacts from Water, Regulation, Labor and Global Pricing
Slide 17: Investing in Relationships
17 Investing in Relationships